Global Travel and Tourism Sector Sees Mixed Deal Activity in 2024

The global travel and tourism sector experienced a total of 715 deals in 2024, encompassing mergers and acquisitions, private equity, and venture financing activities. This figure marks a 4.3% decline compared to the 747 deals reported in the previous year, as highlighted by GlobalData, a prominent data and analytics firm.

Deal activity within the sector has shown mixed results across various types and geographical regions. While private equity transactions improved and the volume of mergers and acquisitions (M& A) remained relatively stable, venture financing deals faced a steep decline, seeing double-digit reductions. In terms of regional performance, Europe demonstrated growth in deal volume, while North America, the Middle East and Africa, and South and Central America experienced significant downturns, each registering double-digit declines. The Asia-Pacific region saw its deal volume largely unchanged.

According to an analysis of GlobalData’s Deals Database, there was a remarkable 26.1% increase in private equity deals in 2024 compared to the previous year. In contrast, M& A deal volume grew slightly by 0.4%, while venture financing deals fell sharply by 22.3%.

Europe stood out with a 17% improvement in deal volume compared to 2023. Conversely, North America, the Middle East and Africa, and South and Central America recorded significant decreases in deal volume, declining by 26.7%, 27.8%, and 13.3%, respectively. The Asia-Pacific region also experienced a slight decline of 1.7% in deal volume.

Aurojyoti Bose, Lead Analyst at GlobalData, noted that the trends across key markets were similarly mixed, with some countries experiencing double-digit growth while others faced considerable declines.

For example, the UK, India, and Japan recorded improvements in deal volume by 10.8%, 36%, and 45.7%, respectively, during 2024 compared to 2023. On the flip side, the US, China, and France saw notable declines in deal volume, with reductions of 25.9%, 29.8%, and 26.9%, respectively. Meanwhile, markets such as South Korea and Australia experienced no change in their deal volume.

In summary, the travel and tourism sector's performance in 2024 reflects a complex landscape of opportunities and challenges. As the industry continues to evolve, travel agents and stakeholders should closely monitor these trends and adapt their strategies accordingly to capitalize on emerging opportunities.